GOLD OIL, the London-based oil exploration company focused on the South American and Caribbean region, announces that in late December 2005, the Company received an Operator Certificate from PeruPetro that allows the Company to carry out seismic, drilling and development operations in Northwest Peru.
The Promotion Licence signed with PeruPetro on October 15, 2004 with PeruPetro for Block XI (now renamed Block XXI) onshore Sechura Basin has been converted to an Exploration and Production Licence. The Licence now goes to the Ministry of Energy and Mines for approval, which could be forthcoming anytime between February and May of this year 2006.
The terms of the E&P Licence commit the Company to either shoot 120 km of 2D seismic or drill a well in the first period of five over a seven year term. The remaining four periods require the Company to either drill a well or drop the acreage. The Licence is for a term of 30 years for oil and 40 years for gas, with a minimum royalty of 5% on wellhead production for the first 5000bopd (30 MMscfd for gas) rising to 20% if and when production reaches 100,000 bopd (600 MMscfd for gas).

Times Article:
Gold Oil is valued in the market at about �15m. That is so small that almost any good news must have a big impact on the share price.
What are the chances of that happening? Run by a former Burmah Oil director, Mike Burchell, Gold Oil will drill the first in a series of wells in the Sechura Basin in April. There will be surprise if it does not find gas, as another company, Olympic, has done just that in a similar formation nearby.
The secondary target, later in the year, will be oil, I gather. A couple of months ago, Petro Tech made a big oil find offshore in the Sechura Basin. The theory is the oil may have migrated up into Gold Oil�s block. Don�t ask me to explain the geology because I don�t speak Palaeozoic. But a decent oil find here would be a company-maker.
Gold Oil has enough cash to fund this year�s drilling programme. And it already has a deal in place to sell its gas to Mann Ferrostaal, a German company that is building an ammonia plant nearby. Getting all that for �15m seemed a bargain to me. But Gold Oil still has to find its gas.

GOLD OIL http://www.goldoilplc.com/index.html

Plectrum Web Site
http://www.plectrum.co.uk/splash_content.html

Wall Street Reporter Interview
http://www.wallstreetreporter.com/interview.php?id=17724&player=real
Growth Equities & Company Research Nov 2007
http://www.goldoilplc.com/docum/gecr_09Nov07_GoldOil_full.pdf
Gold Oil's Presentation On The 10/12/2007
http://www.proactiveinvestors.co.uk/pdf
Research Page Last updated Oct 23 2008
http://www.moneyam.com/InvestorsRoom/posts.php?tid=10572#lastread
6 AUG 2009 Operational and Reserves & Resources Update Colombia & Peru
http://moneyam.uk-wire.com/cgi-bin/articles/20090806084900H3062.html

This was lifted off the iii board in response to the advfn post by tvc (985)

Quote...

lob_on, whoever posted that message don't know what they are talking about - tubing is just 'dumb' steel that has to be run and is used to case off the exposed rock. This tubing then needs to be perforated through with explosive guns in order to allow the well to be tested - not a "very complicated and expensive bit of production kit" as the speil states. The above quote refers to a completion string and that would only be run once the well is proved commercial and even then only if this well has been designed as a 'producer' rather than just an exploration / appraisal well.

Also, the bridge plug has more than likely been used to provide one of two barriers required to keep the well under control (prior to well testing) when hydrocarbon bearing formations are exposed downhole (the drilling mud provides the other barrier) not "the bridge plug is used to separate the 2 fields so they can be either tested separately or worked on without affecting the other, keeping them totally isolated from each other".

This is complete BS and is written by someone who only has enough knowledge to be dangerous!

Regards - GF.

Unquote

Any experts out there wish to comment further??

Mr Mole
The worlds full of experts but when they sent the bake bean tins down it was a bit worrying.

Taken from ADVFN.


Loftypants .. Thanks for posting that item from iii. I would like to answer those comments, and just checking in the glossary which is linked at the top of this board, you will see the bridge plug is indeed a tool for isolating the 2 separate zones as I said earlier. Yes, as the writer says, it is also used as a barrier, but isn't that the same thing?

bridge plug
1. n. [Well Completions] ID: 2539
A downhole tool that is located and set to isolate the lower part of the wellbore. Bridge plugs may be permanent or retrievable, enabling the lower wellbore to be permanently sealed from production or temporarily isolated from a treatment conducted on an upper zone.


retrievable bridge plug
1. n. [Well Completions] ID: 2783
A type of downhole isolation tool that may be unset and retrieved from the wellbore after use, such as may be required following treatment of an isolated zone. A retrievable bridge plug is frequently used in combination with a packer to enable accurate placement and injection of stimulation or treatment fluids.

The writer's comment that the tubing is just a dumb piece of steel is not entirely factual, for in this case, as supported by the update on the website, it comes along with numerous very expensive pieces of equipment, such as the master valve, etc, which the company says is being installed at this very moment. I think the dumb piece of steel he refers to is merely the casing, which is put (cemented) in place when drilling, to protect the well bore from rubble, and provide a clean and snag free hole. The tubing required for production testing is ran inside this casing, and is the tube which will carry the production fluids to the surface. This will have to have much equipment attached, such as the pressure guages, valves, and in fact, where production will take place, there are usually 2 master valves installed for safety, and the whole tubing head is rightly referred to as a "christmas tree". I don't think you will purchase one of these for less than many thousands of pounds.

Ok, I am an amateur, not a professional oilman, but I do have a little common sense, and am not prone to making statements or assertions which are intentionally misleading. Can he say the same? Is he a proffessional oilman? I can not answer for him, so you may all take my interpretations or leave them as you choose.

Thanks again for bringing it to my attention, LP.

Regards to all, omr

i hope they confirm something soon as all these 'experts' are getting boring.

I agree with the original poster (omr on advfn), but check it out for yourselves
on--http://science.howstuffworks.com /oil-drilling4.htm
You won't be bored Lizard !
Expect RNS next week and a sharp rise in sp--God willing. Good luck to all
the longs.

gbrown

Apologies for causing any confusion. Harrycat and myself were having an off topic conversation re SportingBet (SBT). Nothing to do with GOO per se.

If the anticipated good news is already in the price remains to be seen, it all depends on whether the 'find' is as big as expected; what we should remember is that the SP has recently doubled and very good news will be required to maintain the new level in the short term. For the longer term holders, this is but the beginning.

From a Technical Analysis (TA) perspective I am expecting good news to drive the SP to 18p/20p.

pth

article regarding goo in the independant today.

Poorly researched and innacurate I'm afraid. Journalistic fodder!!

'Gold Oil continues to attract speculative punters in the hope it will announce a deal sooner rather than later. However, if the deal is not as good as some investors hope, the word in the market is that the shares could make a rapid retreat again. Demand from retail investors sent the stock another penny firmer to 14.62p.'

No shit Sherlock! Of course the SP will make a rapid retreat if the flow testing is crap. Jeez and they pay some muppet to write this crap? Fortunately for GOO, they have plenty of other stuff in the pipeline to stage a similar rapid SP recovery if the news is not good.

Err, and what fooking deal is the clown talking about?

pth

it will announce a deal sooner rather than later. surely the attention is on XXI?. i remember the independant writing about four or five weeks back saying that Z34 looking to be sealed anyday now. they are wrong lets hope the d mail are more accurate?.

http://www.timesonline.co.uk/article/0,,2097-2339749.html

mkt cap incorrect at present though more like 54m not 100m.

has any one read any news today in the sunday papers? if not, strange. look like we are playing the waiting game now. I do not like waiting too long, it brings back memories of waiting for the news on vog, when the shares dropped from 1.70 to 1.01 on the news of the dry wells. When they keep us waiting and waiting, I start wondering if they have any good news to tell us. I hope for good news for us all tomorro. I have a lot of shares in the company. What do you all reckon out there. Lets here your views on the waiting game. looking forward to hearing from you soon. If we do not hear any news tomorro I may consider selling half of my holdings. I have 250,000 at the moment, and maybe make sense to reduce this. Lot of money to lose if it goes wrong.

Janet, exploration companies are a too risky investment unless you can afford to lose all your original investment imo, although they offer huge upside if they can pull it off. Still a long way to go though to get the revenues that will underpin the share price, fund exploration and bring on line any discoveries. Until then shareholders are wide open to further fund raising at discounts to the share price.
I have pulled out my original investment and will let the rest run pending further news.
My policy is to spread my bets and look for companies that have revenues or are about to generate or grow revenues such as Sterling, Gulfsands, Europa and perhaps Black rock. I hold all of these as well as the mid caps such as Burren, Dana, Soco and Premier oil. There have to be some winners here, as long as the oil price holds, and I shouldn't lose my shirt.
I tend to buy on the dips, and not afraid to sell some if the share price rises quickly.
I'm also increasing exposure to the oil service companies as a less risky way to ride the exploration boom, which will continue for some time imo. DYOR

jb- try reading the link to s times today.

thankyou to canary and lizards for your recent posts to me, I have taken note of canaries comments, and I have had a read of the artice in the sunday times which I found very interesting. lets see what today brings. and hope the oil budges lizard.

urgent news just come out

oops

Slight hitch by the looks of it.

what a drop today
i am very happy sold my 20000shares at 13
it allways pays taking profit at parabolic moves before the crowd

no oil company has a smooth run look at bp recently. keep the faith. could yet be a decent outcome on XXI. NBM Z34 Brazil etc im holding on.

I have just sold all mine at .8 and a half pence taken a massive loss again just panicked they dropped 5.5p in seconds. I nearly sold this morning at .145p what a mistake.